In a bid to address Pakistan’s persistent energy crisis, the government has announced a controversial policy shift aimed at altering the dynamics of solar power generation. However, the move has sparked outrage among consumers who have turned to solar energy as a solution to frequent electricity shortages and soaring bills.
The government’s decision revolves around modifying net-metering charges, intending to favor Integrated Power Producers (IPPs) and electricity distribution companies (Discos) at the expense of solar power users. Under the new scheme, the rate at which Discos purchase surplus electricity from consumers generating solar power will be reduced, significantly impacting the financial incentives for those invested in solar panels.
Energy expert Abubakr Ismail has raised concerns, highlighting the direct implications on consumers. Regardless of whether power is generated by independent producers or self-generating consumers, the government remains obligated to compensate them based on production capacity. This alteration in the net-billing mechanism threatens to exacerbate the financial burden on consumers already grappling with exorbitant electricity bills.
The move comes amidst staggering figures of circular debt, with the total reaching a staggering 23.10 trillion rupees, a significant portion of which is attributed to IPPs. In an attempt to alleviate this burden, the government is shifting the financial responsibility onto consumers, further exacerbating public discontent.
The proposed changes have triggered widespread criticism, with many arguing that the government’s focus should be on incentivizing renewable energy adoption rather than penalizing those who have already embraced it. As debates escalate, the future of Pakistan’s energy policy hangs in the balance, with stakeholders anxiously awaiting further developments.
*[Read more: [Govt mulls slashing solar net metering buyback rates by Rs10 per unit](link), [Irked by solar power, govt mulls ordinance to revise net metering rates](link), [Pakistan to replace solar net metering with gross metering: report](link)]*
